Deal Insight
Freeport McMoRan acquires Plains for US$17 billion
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*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Freeport-McMoRan Copper & Gold Inc. (FCX) is to acquire Plains E&P for a total of US$17.2 billion (including debt). In a separate transaction announced on the same day, FCX acquired McMoRan Exploration in a deal that valued the company at US$3.4 billion. This note concerns only the former transaction.Our base-case valuation of the Plains acquisition is US$13.7 billion (NPV10, discounted to January 2013). Against our modelling, the consideration equates to an Implied Long-Term Oil ...
Table of contents
- Executive summary
- Transaction details
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Upstream assets
- Onshore US
- Deepwater Gulf of Mexico
- McMoRan Exploration
- Deal analysis
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Upsides and risks
- Onshore upsides
- Deepwater upsides
- Investment high-grading
- Operational learning curve
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Strategic rationale
- Plains
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Freeport-McMoRan
- Geographic diversification
- Commodity diversification
- Big is beautiful
- Oil & gas pricing and assumptions
Tables and charts
This report includes the following images and tables:
- PXP acquisition details
- Plains reported historic and Wood Mackenzie forecast total production, including upside potential
- Deal analysis: Table 1
- Deal analysis: Table 2
- Oil & gas pricing and assumptions: Table 1
- Oil & gas pricing and assumptions: Table 2
- Upstream assets: Table 1
- WoodMac forecast of Plains net debt cash position and free cash flow outlook sensitivities
What's included
This report contains:
